Reliance rebukes reports of inappropriate payments for Venezuela oil

By Bibhudatta Pradhan on 4/20/2019

Photo: Reliance Industries.

NEW DELHI (Bloomberg) -- Claims of Reliance Industries Ltd.'s purchases of crude oil from Venezuela’s state-owned oil company, PDVSA, for payment in cash to third parties are false, according to the company.

“Reliance has purchased Venezuelan crude oil from companies such as Rosneft long before the imposition of U.S. sanctions, as they do get title to Venezuelan oil in return for reduction in their prior debt, the statement sent to the stock exchanges said referring to the Russian oil company. “Since sanctions were imposed, Reliance has made such purchases with the full knowledge and approval of the U.S. Department of State, and Reliance has informed USDOS of specific volumes and transactions. ”

While releasing quarterly results on Thursday, Reliance’s joint CFO V. Srikanth said it was sourcing Venezuelan crude from Russian and Chinese companies. Payment made to them for supplies are adjusted against dues owed by Venezuela to these companies, he added.